John from Bucks County, PA

American Eagle Outfitters: Impressive Company, Tough Market

About Auction Rate Securites (ARS) with AEO -- Today Citigroup made an announcment where it will begin to settle the ARS issues, with other financial institutions following suit soon. Last I looked, I beleive AEO had about three hundred million dollarsocked up here. If this logjam breaks, one would think some additonal value would unlock for AEO.

I am long the shares and just bought some today at $13.70. I can see the shares testing $12.00 again, but with a little patience, the shares could also more than double in the next 24 months and beyond.

A little help from the economy (say late 2009 and beyond), a little product mix refining and perhaps throwing in the towel on Martin+ Osa...and we could see this stock gain momentum.

If the ARS problem unlocks soon, perhaps managment could use the freed up cash buy in shares at these firesale prices.